Article
Nonlinear Differential Equations in Preventing Financial Risks
Authors
, , and
Abstract
The nonlinear differential equation option pricing formula is invaluable in financial derivatives investment risk assessment. This article applies the theory of nonlinear differential equations to deal with financial risks in commodity and currency markets. Through this condition, we obtain the fair price process of contingent rights under the classic Black-Scholes model and the price process of the optimal growth investment strategy. The results show that the risk measurement under stable distribution is suitable for investors to manage risk.
Keywords
Nonlinear differential equations, Financial risks, Partial differential equations, Financial derivatives, 34A34
Citation
Meng, X., Liu, R., Qeshta, M., & Rashid, A. (2022). Nonlinear differential equations in preventing financial risks. Applied Mathematics and Nonlinear Sciences, 7(2), 757–766. https://doi.org/10.2478/amns.2022.2.0063
X. Meng, R. Liu, M. Qeshta and A. Rashid, “Nonlinear differential equations in preventing financial risks,” Applied Mathematics and Nonlinear Sciences, vol. 7, no. 2, pp. 757–766, 2022, doi: 10.2478/amns.2022.2.0063.
Meng X, Liu R, Qeshta M, Rashid A. Nonlinear differential equations in preventing financial risks. Applied Mathematics and Nonlinear Sciences. 2022;7(2):757–766. doi:10.2478/amns.2022.2.0063.
Meng, X., Liu, R., Qeshta, M. and Rashid, A. (2022), ‘Nonlinear differential equations in preventing financial risks’, Applied Mathematics and Nonlinear Sciences, 7(2), pp. 757–766. Available at: https://doi.org/10.2478/amns.2022.2.0063.
Meng, Xiangli, et al. “Nonlinear Differential Equations in Preventing Financial Risks.” Applied Mathematics and Nonlinear Sciences, vol. 7, no. 2, 2022, pp. 757–766. https://doi.org/10.2478/amns.2022.2.0063.
Meng, Xiangli, Rongquan Liu, Mohammed Qeshta, and Audil Rashid. “Nonlinear Differential Equations in Preventing Financial Risks.” Applied Mathematics and Nonlinear Sciences 7, no. 2 (2022): 757–766. https://doi.org/10.2478/amns.2022.2.0063.
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Published by: Engineering Journals


